(Reuters) – Discount home goods retailer Big Lots (NYSE:) is preparing to file for bankruptcy protection on Sunday and plans to sell its chain of stores through a court-supervised process, Bloomberg News reported on Friday, citing people familiar with the situation.
The company will remain in operation under Chapter 11 protection, the report said, and is currently in the process of securing an alternative bid, meaning the offer could be outbid if better offers emerge.
Earlier in the day, the retailer announced the postponement of its second-quarter earnings release, which was scheduled for September 6. The company now expects to report results on September 12.
The company has been working with advisors from AlixPartners and Guggenheim Partners on the bankruptcy and sale process, the report said.
Big Lots, a retailer that operates about 1,400 stores and employs more than 30,000 workers, has been grappling with declining sales in recent quarters, putting pressure on its balance sheet.
Its shares have fallen more than 90% over the past year and were down more than 22% in extended trading on Friday.
Last week, Bloomberg reported that Big Lots was considering a possible bankruptcy filing and could seek court protection in the coming weeks.
The company did not immediately respond to a request for comment from Reuters.
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